During the first quarter of Fiscal 2025, we began a review of our cost-to-serve focused on improving efficiencies and identifying cost reduction opportunities. Based on this review, we announced a restructuring program in the third quarter of Fiscal 2025 and incurred costs for employee termination benefits related to a reduction-in-force ("RIF"). In the fourth quarter of Fiscal 2025, we expanded the scope to include a comprehensive review of our brands, operations, and financial strategy. The review resulted in the impairment of two regional brands in the fourth quarter of Fiscal 2025. This aligns with our strategy to optimize our brand portfolio and invest in our national brands and key product categories. In the first quarter of Fiscal 2026, we incurred additional RIF-related costs.

In the third quarter of Fiscal 2026, we began implementing a reorganization effort to improve efficiency, simplify our operating structure, and better align resources with our highest-priority growth opportunities. Our focus is to create a more agile organization, reduce complexity, and better meet our customers' needs. We incurred RIF-related costs in the third quarter of Fiscal 2026. We anticipate the remaining RIF-related payments will be complete by early in the first quarter of Fiscal 2027.

The company also incurred consulting costs associated with these restructuring activities during the twelve and forty weeks ended October 10, 2026 and October 4, 2025, respectively, and these costs are included in the selling, distribution, and administrative expenses line item of the Condensed Consolidated Statements of Income.

The tables below present the components of costs associated with the restructuring programs detailed above (amounts in thousands):


	For the Twelve Weeks Ended		For the Forty Weeks Ended
	October 10, 2026		October 10, 2026
Restructuring charges:
RIF (1)	$	4,556	$	6,208
Restructuring-related implementation costs (2)		1,038		14,810
Total restructuring charges and related implementation costs	$	5,594	$	21,018


	For the Twelve Weeks Ended		For the Forty Weeks Ended
	October 4, 2025		October 4, 2025
Restructuring charges:
RIF (1)	$	5,510	$	6,083
Restructuring-related implementation costs (2)		3,534		10,718
Total restructuring charges and related implementation costs	$	9,044	$	16,801

(1)

Presented in the restructuring charges line item of our Condensed Consolidated Statements of Income.

(2)

Costs are recorded in the selling, distribution and administrative expenses line item of our Condensed Consolidated Statements of Income.

The table below presents the components of, and changes in, our restructuring accruals (amounts in thousands):


	RIF
Liability balance at January 3, 2026	$	750
Charges		6,208
Cash payments		(4,987	)
Liability balance at October 10, 2026	$	1,971